Shocking NFT Heists: Over $100 Million Stolen Since 2021

The Great NFT Heist: An Overview

Hold on to your digital wallets! A recent report from cryptocurrency risk management firm Elliptic makes a bold claim: more than $100 million worth of nonfungible tokens (NFTs) have been pilfered from unsuspecting crypto enthusiasts since 2021. A real-life horror story for the crypto community!

Breaking Down the Stolen Value

Between July 2021 and July 2022, approximately $100.6 million in NFT scams went down the digital drain. July 2022 was the pinnacle of theft, with scammers snatching 4,647 NFTs, while May 2022 saw the highest monetary loss at a staggering $23.9 million. Talk about taking candy from a baby – or should we say, taking digital art from a collector!

Notable Theft: The CryptoPunk Incident

One of the most infamous incidents involved a CryptoPunk valued at a jaw-dropping $490,000 at the time of its theft in November 2021. In a bizarre twist of fate, December 2021 saw a single victim lose 16 blue-chip NFTs worth over $2.1 million. It sounds like the villain in this story had a field day!

The Laundering Machine Behind the Curtains

According to Elliptic, scammers have laundered more than $8 million through NFT platforms since 2017. A significant amount was associated with notorious cryptocurrency mixers, like Tornado Cash, which has been linked to more than $328 million in illicit transactions. In the world of crime, it seems the NFT space has become the go-to venue for sneaky fund laundering.

Who’s Getting Targeted?

The average collector isn’t the only one feeling the heat. Even big guns like the Bored Ape Yacht Club are not safe. In the chaotic April of 2022, over 2,000 NFTs were swiped for around $20 million, largely due to a fake airdrop scheme targeting its holders. The Bored Ape yacht face-planted with a robbery of $58.1 million worth of its NFTs and its mutant cousins in July 2022. NFT owners, remember to keep a watchful eye!

The Rise of Phishing and Other Scams

As the token theft saga unfolds, it’s clear that scammers are getting more creative, utilizing phishing attacks, exploiting marketplace vulnerabilities, and who knows what else! With a class-action lawsuit looming, the fate of NFTs hangs in the balance, forcing the U.S. Securities and Exchange Commission (SEC) to rethink how it views these digital assets.